DGAP-News: German Startups Group GmbH & Co. KGaA: G|S Market enables broad investor groups to make direct investments in leading German startups and venture capital funds

Today the first secondary market platform for tech assets in Germany is launched

G|S Market^TM enables broad investor groups to make direct investments in leading German startups and venture capital funds

• New online matchmaking platform brings together providers and interested buyers of start-up and VC fund shares
• Contribution to furthering the start-up culture in Germany
• Growing importance of tech investments for investment portfolios
• High quality and transparency standards
• Platform is immediately available online with 10 tech assets amounting to EUR 15m; further assets amounting to EUR 10m expected in the next days

Berlin, June 19, 2018 - The German Startups Market GmbH, a wholly owned subsidiary of the listed German Startup Group GmbH & Co. KGaA, headquartered in Berlin, announces the launch of a unique online platform for startup shares and other tech investments in a festive event. For the first time, the platform named G|S Market^TM gives a wider group of investors the opportunity to participate in disruptive, young growth companies - so-called tech assets - with investment amounts of more than EUR 200k. Guest speakers include Thomas Jarzombek (MdB), spokesman of the CDU / CSU parliamentary group for the Digital Agenda, Florian Noell, chairman of the German Startups Association, and Nikita Fahrenholz, Berlin startup entrepreneur and co-founder of Book-a-Tiger and Delivery Hero. All three emphasize in their lectures the important contribution of such a platform for a functioning German startup ecosystem. Among the guests is expected Brigitte Zypries, the former Federal Minister for Economic Affairs and Energy, who served in office until March 2018.

"From a founding perspective, the platform is an excellent idea. G|S Market^TM actually solves one of the main problems for startups, the illiquidity of the shares." Nikita Fahrenholz comments on the launch of G|S Market^TM

G|S Market^TM is an online matchmaking platform for providers and buyers of so-called secondary shares in German startups. In the future, it will enable potential buyers of secondary shares, i.e. start-up shares owned by founders, business angels, employees or venture capitalists, to contact potential investors on an online platform and thus create liquidity for what were previously largely illiquid shares. In addition to startup shares, the platform is open for example to VC funds, convertible loans, venture loans and profit participation rights.

In the run-up, the company interviewed numerous opinion leaders from the German startup and VC scene and received positive feedback without exception, such as:

"I think the idea is great. It solves a key problem for this asset class", said Erik Podzuweit, founder and CEO of Scalable Capital, a German start-up with EUR 1 billion in assets under management

"The new platform closes a gap in the market and is important for the startup ecosystem," says Alexander von Frankenberg, CEO of Germany's most active VC investor, the High-Tech Gruenderfonds in Bonn

Wide range of investment opportunities

After registering via the platform, investors can view and compare investment opportunities and get in touch with the relevant providers. The new online platform is intended to provide qualified investors with access to the entire range of investment opportunities in the "German Tech" asset class, with investment amounts starting at EUR 200k, while direct investment and VC funds are often only available from seven-digit minimum amounts. In addition, it enables investors to make direct investments into VC funds and putting together tailor-made tech portfolios. The German Startups Group will also provide special purpose vehicles ("SPVs") which allow acquiring multiple investors in the form of pooled investments, as well as acquiring larger investment opportunities.

Growing Importance of Tech Investments for Investment Portfolios

An increasing share of the value creation for shareholders of young companies takes place during the phase in which growth companies are not yet listed and thus not yet accessible via the capital markets - because IPOs require more and more size.

With increasingly shorter innovation and disruption cycles, the importance of tech assets in investment portfolios is increasing. The ability of investors to participate in disruptive German growth companies, German VC funds and other tech investments has so far been reserved for a limited circle of VC investors and very wealthy families.

Contribution to the startup culture in Germany

With G|S Market^TM we will make an important contribution to the startup culture in Germany." says Christoph Gerlinger, founder and CEO of G|S Market^TM and the German Startups Group. "A functioning secondary market makes illiquid startup shares more accessible, thus reducing the risk for founders and angel investments - especially given the country's often slightly longer time to exit. Thus, such a market should strengthen the start-up activity and innovative capability in Germany. A secondary market helps to further close the huge VC gap in Germany."

Highest quality and transparency

G|S Market^TM will only allow offers from Shares and from Participants who are, in their eyes, reputable, have good appreciation prospects, and have a fair valuation - thus filtering the quality of offerings and reputations of participants. By offering a whole range of investment opportunities, the platform provides a high level of transparency while protecting the trade secrets of startups.

Platform is immediately available online with 10 tech assets amounting to EUR 15m in volume

From now on, founders, business angels, VC funds, and other equity growth company and VC fund owners can upload asset quotations ("invitatio ad offerendum") to the marketplace at www.german-startups.market. Investors interested in Tech Investments can register there and look for suitable investment opportunities.

Already from the start, 10 stakes of established offerers of the asset class German Tech are available on the platform; further assets amounting to EUR 10m are expected in the next days. By the end of the year, over 50 holdings of established providers of the German Tech asset class are to be available on the platform. Also other forms of investment - e.g. shares of newly launched or existing VC funds, convertible loans, venture loans, etc. - will be represented on the platform in the future. Since the investment forms mentioned are generally not transferable without the notarial deed and / or consent of third parties, the transactions, i.e. the binding purchase offers, their acceptance and the entire contractual documentation take place outside the platform.

Connection of the demand side

The German Startups Market GmbH talks to well-known asset managers and private bankers with often tens of billions in assets ("assets under management") in order to connect the demand side to the platform.

For more information about G|S Market^TM, visit the company's website: www.german-startups.market

Contact
G|S Market^TM
German Startups Market GmbH
Marcel Doeppes
Tel. +49 162-4825697
mail: market@german-startups.com